VCN – In the draft Circular to amend and supplement Circular No. 38/2015/T-BTC, contents related to management of goods processed and manufactured for export and export processing enterprises have been reviewed and revised by the Draft Board to meet the actual situation. Of which, regulations on amount and settlement report have been proposed to be amended.
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Terms to be added
Regarding the amount, to unify the term used in Article 40 of Decree No. 69/2018/ND-CP and actual production at enterprises, the General Department of Customs proposes to amend the term of the actual amount into actual used amount and supplement the concept on expected used amount. The content is detailed as follows: the actual used amount is the amount of materials and supplies actually used for processing and manufacturing an export product and is determined according to regulations in form 27 Appendix II attached this Circular.
If scrap and byproducts from the production of export productsareused for recycling or production of export products, the production amount of such export products must be set according to the provisions of this Article. (Example: Enterprise A imports tobacco leaves to produce tobacco fibers type 1 and type 2 for export, the stage of production is to separate leaves to produce tobacco leaves type 1 and stalks, and then dry them and press them into brickswhich will be sliced to produce tobacco fibers type 2. So, enterprise A must set up the norms for tobacco fibers type 1 and type 2).
Of which, scrap as discarded materials during the processing or production of export goods no longer of its original use value is recovered as raw materials for other production processes; byproducts are finished products and semi-finished products failingto meet technical standards (specifications, dimensions, qualities), which are excluded during the processing and production ofexport goods and do not meet export quality.
In addition, the expected used amount is clearly stated as the amount of raw materials and supplies expected to be used to process and produce an export product, which is set by the organization or individual for production.
The draft stipulates the organization and individual responsible for storing data, vouchers and documents related to the development of expected used amount and determination of the actual used amount; and notifying the actual used amount according to the fiscal year to the customs agency when making the settlement report as prescribed in Clause 2, Article 60 of this Circular. The authorized economic operator is in charge of storing the actual or expected used amounts, data, vouchers and documents related to the determination of the actual used amount or expected used amount and present them to the customs agency upon inspection and do not need to notify the customs agency when making the settlement report.
Particularly, for manufactured products that are not yet finished at the end of the fiscal year, the organization or individual has not yet had to submit the actual used norm when submitting the settlement report (for example, the processing and manufacturing of a ship takes three years, the actual used amount will be required to be submitted in the third fiscal year).
If materials directly involved in the production process but product-based amount cannot be set, the organization or individual must store documents related to the use of materials and state it in the settlement report on import - export - inventory situation of these materials.
The organization, individual and customs agency shall base it on actual used amount to determine the tax amount upon change of use purpose, change to domestic consumption, and refund tax or shall not collect tax when the Customs agency conducts post-customs clearance audit or specialized inspection.
Allow to correct actual amount if there is an error
Regarding the settlement report of the use of imported raw materials, supplies and exported goods, regulations in Points b and c of Clause 2, Article 60 stipulate that the enterprise must submit a settlement finalization report and actual amount to the customs agency at the end of the fiscal year. If there is an error when making the settlement report, the enterprise is allowed to correct the settlement report. However, for enterprises facing problems in the implementation of above regulations, if they discover errors in the determination of the actual amount, will they be allowed to amend and supplement the actual amount in the settlement report?
To solve problems for enterprises, the Drafting Board expects to amend and supplement in the direction of allowing enterprises to correct their actual norms if detecting errors similar to the settlement report, detailed as follows: within 60 days from the submission date of the settlement report, but before the customs agency issues a decision to inspect the settlement report, conduct the post-customs clearance audit and inspection, the organization or individual discovers errors in making the settlement report and determining the actual use amount, they shall be allowed to amend and supplement the settlement report and the actual use amount and re-submit to the customs agency.
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If beyond 60 days from the submission date of the settlement report, or before the customs agency issues a decision to inspect the settlement report, conduct post-customs clearance audit and inspection, the organization or individual discovers errors in making the settlement report and determining the actual use amount, they shall be allowed to be amended and supplement the settlement report and the actual used amount and re-submit to the customs agency but they shall be sanctioned.
By Ngoc Linh/ Huyen Trang